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- 1. FINNANCIAL RATIO ANANLYSIS PEPSICO INC vs COCA COLA
- 2. YEAR Current Assets (In USD Billion ) Current Liabilities (In USD Billion ) Current Ratio Current Assets (In USD Billion ) Current Liabilities (In USD Billion ) Current Ratio 2013 22.14 17.84 1.24 31.3 27.81 1.13 2012 18.63 17.09 1.09 30.33 27.82 1.09 Current Ratio Quick Ratio Inventory Turnover Current Ratio = Current assets Gross Profit Net Profit Current liabilities Debt Equity Asset Turnover Equity Turnover Current Ratio: 1. Is a popular tool to evaluate the ability of a business to pay its short-term obligations payable within a short period of time, usually one year. 2. A ratio of 2:1 or higher is considered satisfactory for most of the companies 1.3 1.25 1.2 1.15 1.1 1.05 1 2012 2013 PEPSICO COCA COLA
- 3. YEAR Current Assets(In USD Billion) Current Liabilities (In USD Billion) Inventory (In USD Billion) Quic k Ratio Current Assets (In USD Billion) Current Liabilities(In USD Billion) Inventory (In USD Billion) Quick Ratio 2013 22.14 17.84 3.58 1.04 31.3 27.81 3.28 1.01 2012 18.63 17.09 3.41 0.89 30.33 27.82 3.26 0.97 Current Ratio Quick Ratio Inventory Turnover Gross Profit 1.1 1.05 1 0.95 0.9 0.85 Net Profit Debt Equity Asset Turnover Equity Turnover Quick Ratio: 1. is used to test the ability of a business to pay its short-term debts. 2. It measures the relationship between liquid assets and current liabilities. Liquid assets are equal to total current assets minus inventories and prepaid expenses 0.8 2012 2013 PEPSICO COCA COLA Quick ratio = Liquid assets current Liabilities
- 4. YEAR Sales (InUSD Billion ) Inventory (In USD Billion ) Inventory Turnover Ratio Sales (In USD Billion ) Inventory (In USD Billion ) Inventory Turnover Ratio 2013 66.42 3.58 18.6 46.7 3.28 14.238 2012 65.49 3.41 19.2 48.07 3.26 14.745 Current Ratio Quick Ratio Inventory Turnover Gross Profit 25 20 15 10 5 Net Profit Debt Equity Asset Turnover Equity Turnover Inventory turnover Ratio: 1. Ratio that evaluates the liquidity of the inventories of a company. 2. It measures how many times the company has sold and replaced its inventory during a certain period 3. A high ratio indicates fast moving inventories and a low ratio, on the other hand, indicates slow moving or obsolete inventories in stock ITR = Cost of goods sold Avg. inventory at cost 0 2012 2013 PEPSICO COCA COLA
- 5. YEAR Gross Profit(In USD Billion) Net Sales (In USD Billion ) Gross Profit Ratio Gross Profit (In USD Billion ) Net Sales (In USD Billion ) Gross Profit Ratio 2013 35.23 66.42 0.53 28.36 46.7 0.61 2012 34.15 65.49 0.52 29.15 48.07 0.61 Current Ratio Quick Ratio Inventory Turnover Gross Profit 0.62 0.6 0.58 0.56 0.54 0.52 0.5 0.48 Net Profit Debt Equity Asset Turnover Equity Turnover Gross Profit Ratio: 1. Profitability ratio that shows the relationship between gross profit and total net sales revenue. 2. It is a popular tool to evaluate the operational performance of the business 3. Generally, a higher ratio is considered better. Gross profit ratio = Gross Profit Net Sales 0.46 2012 2013 PEPSICO COCA COLA
- 6. YEAR Net Profitafter tax (In USD Billion ) Net Sales (In USD Billion ) Net Profit Ratio Net Profit after tax (In USD Billion ) Net Sales (In USD Billion ) Net Profit Ratio 2013 6.73 66.42 0.1 8.58 46.7 0.18 2012 6.18 65.49 0.09 9.02 48.07 0.19 Current Ratio Quick Ratio Inventory Turnover Gross Profit 0.2 0.18 0.16 0.14 0.12 0.1 0.08 0.06 0.04 0.02 Net Profit Debt Equity Asset Turnover Equity Turnover Net Profit Ratio: 1. A popular profitability ratio that shows relationship between net profit after tax and net sales. 2. It is computed by dividing the net profit (after tax) by net sales 3. Purpose of this ratio is to evaluate the profitability of the business from its primary operations 4. A high ratio indicates the efficient management of the affairs of business Net profit ratio = Net Profit after tax Net Sales 0 2012 2013 PEPSICO COCA COLA
- 7. YEAR Total Liability (In USDBillion) Stockholder’s equity (In USD Billion ) Debt Equity Ratio Total Liability (In USD Billion) Stockholder’s equity (In USD Billion ) Debt Equity Ratio 2013 52.96 24.41 2.17 56.62 33.17 1.71 2012 52.12 22.42 2.32 53.01 32.79 1.62 Current Ratio Quick Ratio Inventory Turnover Gross Profit 2.5 2 1.5 1 0.5 Net Profit Debt Equity Asset Turnover Equity Turnover Debt Equity Ratio: 1. It shows the relation between the portion of assets provided by the stockholders and the portion of assets provided by creditors 2. A less than 1 ratio indicates that the portion of assets provided by stockholders is greater than the portion of assets provided by creditors 3. A ratio of 1 : 1 is normally considered satisfactory for most of the companies. Debt equity ratio = Total Liabilities Stockholder’s Equity 0 2012 2013 PEPSICO COCA COLA
- 8. YEAR Sales (InUSD Billion ) Total Assets(In USD Billion ) Asset Turnover Ratio Sales (In USD Billion ) Total Assets(In USD Billion ) Asset Turnover Ratio 2013 66.42 77.48 0.86 46.7 90.06 0.52 2012 65.49 74.64 0.88 48.07 86.17 0.56 Current Ratio Quick Ratio Inventory Turnover Gross Profit 1 0.9 0.8 0.7 0.6 0.5 0.4 0.3 0.2 0.1 Net Profit Debt Equity Asset Turnover Equity Turnover Asset turnover Ratio: 1. Measures the efficiency with which assets are used by a company 2. If assets turnover ratio of an industry is 0.83. It means every dollar invested in the assets of the industries produces $0.83 of sales Asset turnover ratio = Net Sales Avg. total assets 0 2012 2013 PEPSICO COCA COLA
- 9. YEAR Sales (InUSD Billion ) Shareholders Equity (In USD Billion ) Equity Turnover Ratio Sales (In USD Billion ) Shareholders Equity (In USD Billion ) Equity Turnover Ratio 2013 66.42 24.41 2.72 46.7 33.17 1.41 2012 65.49 24.42 2.68 48.07 32.79 1.47 Current Ratio Quick Ratio Inventory Turnover Gross Profit Equity turnover ratio = Net Sales 3 2.5 2 1.5 1 0.5 Net Profit Debt Equity Shareholder’s equity Asset Turnover Equity Turnover Equity turnover Ratio: 1. Equity turnover is used to calculate the rate of return on common equity, and is a measure of how well a company uses its stockholders' equity to generate revenue 2. The higher the ratio is, the more efficiently a company is using its capital. also called capital turnover. 0 2012 2013 PEPSICO COCA COLA